Video: Equity Financing in the Mining Exploration Sector

Video: Equity Financing in the Mining Exploration Sector

Mining exploration is a notoriously capital intensive sector. Because companies typically generate no or little revenue, they must go to the capital markets with the lure of creating the next big economic discovery.

These dynamics create the risk and reward in the sector that make it unique, but they also create a barrier to entry for average person. Many regular investors that trade stocks and mutual funds do not know how private placements, warrants, or hold periods work.

About a year ago, we worked in conjunction with VADAR and Cambridge House to create this video (and the infographic below) to educate investors on the nuts and bolts of raising capital in the mining sector.

When it says “only certain investors are exempt from investing in a certain company without a prospectus”, and lists Accredited Investors, Institutional Investors and Employees and Associates, doesn’t that include pretty much anyone who would ever do a private placement with an explorer?